Understanding Advanced Binary Options Strategies

Understanding Advanced Binary Options Strategies

Submitted by adil on Thu, 05/29/2014 - 18:06

These Strategies Will Help You Profit

One of the benefits of trading in the binary options market is that you can generate high returns during a short period of time, and for that to happen, you need to have a strong binary option strategy. Therefore, being a binary options trader, you can use some of the advanced strategies that can help you generate great profits. Following are some of the strategies that are used by the investors who frequently trade in the binary options market:

Doubling Up Trading Strategy

It is a very straight forward and easy to understand the strategy, but in order to understand it more clearly, you should be well familiar with the concept of technical as well as fundamental analysis. You can effectively employ this strategy in binary options trading if you are experienced in performing the market analysis. Doubling up trading strategy requires you to double up on the money you invested when you are receiving positive output on your initial investment and believe that you will continue to receive positive outcome in the future. However, you should know that by doubling up your investment, you increase the risk exposure twice as much. So, it is better for you to know the market well enough before you implement this strategy.

Market Pull Strategy

Although, it may seem easy to execute this strategy, but as a matter of fact, the market pull strategy demands a detailed research and thorough understanding of how underlying securities can interrelate with each other in different ways. This is the reason why this strategy is only suitable for experienced traders at intermediary or advance level. The secret to place a successful trade with this binary option strategy is to take advantage of these interrelationships and fully utilize the economic calendar to plan the perfect time for executing the trade.

Boundary Strategy

Boundary strategy focuses on the higher and lower limits of the asset price. With this strategy, you are required to find out if the price will remain within the limits at the time of expiry. However, boundary strategy doesn’t take into account the direction in which the price of the underlying asset moves.

Long Shot Strategy

With long shot strategy, a trader expects to receive a favorable outcome. You are required to purchase an option with a predefined return that is nowhere near the strike price. Although, it is less likely for a trader to place a successful trade with such a strategy, yet, he takes a risk of using this strategy with the expectation to earn higher profits that he can earn by using it. Therefore, one of the benefits associated with this strategy is that you do not have to win the trade every time in order to get an overall positive outcome on the money you invested.

It is very important for a trader to know that there are a large number of advanced binary options strategies that they can choose from, but they have to make sure that they have enough trading experience of the market before using any of the strategies to place a trade.